Even Mark Zuckerberg is selling off Facebook stock
Here were the words of one top money man last week regarding Facebook stock:
I was speaking with the investor, who I’ll allow to remain nameless in light of how his prediction's turned out, ahead of the social network’s IPO, when speculators seemed to be split in two camps: 1) Facebook doesn’t earn; stay away, and 2) Anything with 900 million-plus users can’t possibly flop; get in while it’s still cheap.
In four days of trading, Facebook certainly hasn’t shown it has legs, and today a tough harbinger has hit the company. Even Mark Zuckerberg is selling.
According to securities filings published late yesterday, Facebook’s founder and CEO has sold off 30.2 million shares of the social network. Zuckerberg made $1.13 billion in the sale.
*Bing: How to know when a stock will soar, flop
PayPal co-founder Peter Thiel, who was also Facebook’s very first investor back in 2004, sold 16.8 million of his own shares, too, for gross proceeds of $633 million.
Top company officials selling their stock was to be expected after Facebook hit the market, and indeed the moves may be formalities more than anything.
But it’s still a tough omen for the fate of Facebook’s public life that its face, founder and top man, Zuckerberg, appears to be fleeing the scene. Facebook stock traded around $31.90 mid-day Wednesday, more than six bucks less than it debuted at Friday.
Worse, the PR headaches don’t stop there for Facebook's trading. As its stock flounders, the social network is being sued by its shareholders, who allege Facebook hid weakened growth forecasts ahead of its IPO last week.
The money manager I spoke with intimated Facebook would have “legs,” suggesting it would trade at or above its IPO list price for weeks to come.
It may well still. But so far, it appears Facebook’s legs are broken.
By Jason Buckland, MSN Money
Posted by: Don D | May 23, 2021 1:22:15 PM
If I were, Zuckerberg I would sell the stock too, create the panic, and buy back his own company at half the price.
Posted by: Noitall | May 24, 2021 12:26:26 AM
cheated by your own greed. America, what a dumping ground for corruption
Posted by: mark | May 24, 2021 1:16:37 AM
Break A Leg!
Posted by: jeff renwick | May 24, 2021 2:58:50 AM
If america is a dumping ground for greed as you say, tell us what cointry you are from or what standard you can be held to.
Posted by: shamiz | May 24, 2021 3:43:06 AM
How would one buy a facebook stock
Posted by: Rob | May 24, 2021 7:05:46 AM
To buy facebook stock simply wait 2 more weeks and reach into the county fair porto john and squeeze, cause thats all facebook/facebook stock ever was and is...It doesnt produce anything therefore it cannot make money..Enron anyone?
Posted by: Realist | May 24, 2021 8:47:22 AM
Anybody who didn't realize from the beginning that the company was over-valued needs to give their head a shake. $100 billion for an opening value? About $100 per user? Who arbitrarily selected this value? And I do mean arbitrarily because the financial statement don't support this amount.
I have to agree with the 'dumping ground for greed' statement. The "cointry" (as renwick ironicly puts it) is based on screwing your brother for a profit. Some call it capitalism, others call it greed, either way it's all about money in my pocket at the expense of others. We're number one, we're number one. Wave that flag in some patriotic dance and everything will be ok. Ignorance and stupidity is easily over-shadowed by pomp and pagentry.
Every investor who lost money deserves to lose money. It's the stock market ... legalized gambling. You can't get your money back from a bookie because your horse came in 5th. Putting your money in the stock market doesn't guarantee immediate profits, only the possible potential to win ... just like a lottery ticket. If you were sold stocks based on potential gains, then sue your broker because he led you astray. If you bought based on only listening to the news, then you really didn't do any proper research and deserve to lose. Were you hoping to have your investment gift wrapped and served on a silver platter (with a side of freedom fries)?
Next time, the investors should spend more time doing research in their potential investments instead of jumping off the cliff like the other lemmings. Blaming others for your own misfortune only solidifies the proof of your own stupidity.
Posted by: rogers dad | May 24, 2021 9:05:41 AM
oh what a dud, I wish I could of shorted that crap from $40, no shares to short yet....oh the agony.
Posted by: Noitall | May 24, 2021 10:42:20 AM
Jeff
My country has greed and corruption too but not even close to how corrupt the USA is.
Posted by: anticrap | May 24, 2021 11:06:26 AM
Buying a stock at its IPO is never a shrewd move. If the CEO had any class he would hang on to all his shares as a gesture of faith and solidarity. CEO and "class" rarely go together so nothing surprising here.
Posted by: Christ1969 | May 24, 2021 11:23:11 AM
PROBLEM?
I don't see a problem here. He sells his stocks to get some cash in hand. If my company had just gone public, I'd want to cash in on all my hard work too.
At least he didn't sell all his stocks, he still has a majority of the stocks and maintains control of his company.
Posted by: jackassmachine | May 24, 2021 11:29:49 AM
What does Facebook sale (besides farmville etc)?
Posted by: anticrap | May 24, 2021 11:40:08 AM
Hmmm. I am assuming that a significant portion of money coming from the IPO sale goes to its founder and CEO.
Posted by: Kimba | May 24, 2021 11:47:15 AM
Sorry people, but i would rejoice the day Facebook will be gone forever, i never joined,but sad to say through my friends and their comments plus what i read all that's happening to FB it will only
be a good thing if it dissapears from the surface of the earth,then maybe people will socialize face to face, and get together to talk and have fun and be real instead of being able to project (as many people do) something unreal about themselves
Posted by: Cramer | May 24, 2021 12:11:14 PM
The old pump and dump. Welcome to the house of pain. 50% of Americans think Facebook is a fad. GM pulled all ads saying people who sit in thier house all day on Facebook don't buy cars and I will agree with that. FB will soon be just another social network site battling among a sea of a thousand sites.
Posted by: Really | May 24, 2021 12:33:52 PM
Really People when I heard FB was going on the stock market I laughed. And I know nothing about stocks. But FB what could one gain from a social network site. So the smart people r the one's who didn't buy into this. The one's that did buywere looking for something that isn't there silly people with no brain'sl. As for Mark selling shares smart move on his part, isn't that what most companies do.
Posted by: Cramer | May 24, 2021 12:54:55 PM
Time to short sell FB all the way to zero and steal all of Zuckerberg's money. That will be great!
Posted by: Evil Monkey | May 24, 2021 12:57:21 PM
I see all this complaining that people are doing any money out of Facebook after day 3.
I don't see how Facebook faired badly.
The problem that stock buyers have is with that the current stakeholders were able to claim most of the value on the table.
You should have bought Facebook only as a hedging strategy. Is it a sure bet? No it's not, but then again, what is? You don't know what you don't know.
The way I see it all the complainers out there are only the speculators that were thinking of making a quick buck on Facebook.
I couldn't be less sympathetic for people that were trying to make money gambling with the market.
Mark Zuckerberg still controls the company so he couldn't care less whether if the rest of the shareholders like it or not.
You bought the stock under Zuckerberg's conditions so suck it up.
As I see it in the long run this could be good news for Facebook long term shareholders as long as Mark is still interested in growing the company.
Agree that the $100 B valuation is abritrary. The current revenue mix does not support such valuation, but I don't see why people are making such a big deal out of this anyhow.
No internet IPO or high tech has been in the past supported by it's cash flow projections. Instead they've always been bets that they can grow at a high rate in the future.
If you bought Facebook's shares you should have bought it because you believe they can break away from ad revenue and diversify it's revenue stream. no other way around it.
It could go bust, but it could turn out to be the next Apple.
I found this really good article comparing Google and Facebook IPOs.
http://www.tnl.net/blog/2012/02/05/facebook-ipo-vs-google-ipo/
Posted by: betsy | May 24, 2021 2:20:22 PM
Facebook 'diversify its revenue stream'? The only thing they have to sell is your information, folks! All those little bits of your lives and likes that you've so generously given them. Marketers would kill for that info: who wants what, what is popular, who is a trend-setter. From mailing lists to targetted marketing, it's pure gold. And, Facebook's only real asset. And when people find out that their lives are for sale, they'll desert Facebook in droves.
Posted by: Agent 99 | May 24, 2021 2:42:43 PM
... and there you have it. Well put betsy! People expose themselves on Facebook like the internet is some black hole. If a reporter followed you around trying to take pictures of you and your family and asking personal questions you would tell them off. But put it in print forEVER on FB and thats okay? I don't get it.....
Posted by: mochachagirl10 | May 24, 2021 4:15:53 PM
lol all i i have to say is he is a genius i hope he gets everything that he wants.without him what he inventeed we would'nt be sharing or viisiting our friends from far away or contact them.facebook is only way. simple as that duhhhhhh!!!!!!!!! :p
Posted by: Cramer | May 24, 2021 4:48:00 PM
But the sheeple love FB. Look at me, I'm a fame whore just like Gaga and Bono.
I'll bet Bono is dumping his shares on this death spiral. Who in thier right mind over the age of 18 uses this junk except to watch what thier children are doing on it.
Posted by: walter pembroke | May 24, 2021 8:30:56 PM
All I have to say is, if someone asked me what I thought of Mark Zukerberg, I would say that he is somebody that doesn't have permission to enter my home unless I allow him to come in, and that is all that he is. Money doesn't make a person have class, as he proves this point effortlessly. Whoever bought shares of this bullshit belongs with all the other wannabe rich jerks. If nobody has figured out yet that only lazy schmucks work on Wall Street and Bay Street and all the other money making machines, then get your head out of your ass. This has nothing to do with hard work or honesty. It is all about who can make the biggest bucks the easiest and fastes ways possible. And if I had the chance to join the club and make big bucks fast, fast, fast, would I want to join? You bet I would. I can pretend I like the guys I would be working with just like they can. I am already rich, so I am lucky that I don't have to lower myself to their standards. And there are more than enough greedy entreperneurs out there to keep this type of thing going on forever. Gotta hand it to them. Media spin and hype are what sells everything, no matter how worthless it really is. Ah, but only in America.
Posted by: watch movies | May 24, 2021 10:37:08 PM
I think he's just doing what he think is right. At least he still own the company so he could still take over and control all the plans on facebook.
Posted by: pj | May 25, 2021 3:37:51 PM
Time for facebook to fold.
Posted by: Mr. Negative | May 29, 2021 9:22:23 AM
Good for him. He probably still has to pinch himself to see if this dream is real. In his wildest dreams he probabably never thought he would be this rich from a useless product.
This product is the true meaning of how we have evolved as people. We think we are so great, we make our own biographies and post it for the world to see. We are so important that if i take a crap, i must twitter, facebook, myspace, instagram, this info to share with the world.
Anyhow, Zuckerberg isn't rich because he is a genius, he is rich because we the people made him rich. If people start playing outside again and enjoying the natural wonders of the world, these tech companies won't be making billions of dollars for products that aren't needs.
Farmers should make billions......................
If i were Zuckerburg, i would pull out too. It only makes sense. Once people actually have to start paying to use facebook, the trend will die.
Look at youtube, who wants to sit around watching advertising all day?